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"It may not be as swift as we have seen it in the past. I think ultimately we're still waiting for a major macro catalyst to propel it upwards."
- TD Securities (based on Reuters)
Pair's Outlook
USD/CAD slipped below monthly S1 and even below weekly S2 at 1.0889 earlier today; however, since then the pair has bounced back to trade around monthly S1 at 1.0912. We expect that the pair will stay around current levels; however, appreciation around or above 1.1000 level might encourage traders to buy. We do not suspect the pair falling lower than weekly S3 and major level at 1.0800.
Traders' Sentiment
The SWFX traders are still very much convinced that the U.S. Dollar is going to gain relative to the Loonie, as pair's bulls take up 72% of the market, and this is a significant advantage over the bears (28%).
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